Town Council President David Rosow predicted Tuesday that the stock market upheaval on Wall Street will cause the town’s property values to “plummet,” thus reducing tax revenue and squeezing town government even harder.
Rosow told Town Manager Peter Elwell to plan for a smaller budget for the 2012-13 fiscal year, and to look for savings that would include pay cuts for town staff.
“It’s time to take another look at the budget for savings, including potential salary reductions,” Rosow said at Tuesday’s council meeting. “I would hate to see us have to lay people off.”
The Dow Jones Industrial Average fell 635 points on Monday as investors to reacted to the first downgrade of the U.S. government’s debt rating by Standard & Poor’s, and as fears of another recession intensified. It was the steepest one-day point loss since December 2008.
On Tuesday, after the Federal Reserve said it would retain its low-interest rate policies for two more years, the Dow regained 439 points, closing above 11,000.
Read : ” With stock market drop ” an article by Tha Palm Beach Daily News